Aromatic hydroxyl-containing compounds have previously been employed to prepare high molecular weight advanced epoxy resins or to cure epoxy compounds; employed in the preparation of epoxy resins and the like. While the resultant products possess good properties, it is always desirable to have available products with improved properties. The aromatic hydroxyl-containing compounds containing organosiloxane moieties of the present invention make it possible to prepare epoxy resins which when cured possess an improvement in one or more of the desirable properties such as thermal stability, moisture resistance, electrical properties and low stress. Therefore, the present invention incorporates the organosiloxane moiety into the aromatic hydroxyl-containing skeleton in an attempt to modify these thermosetting resins. This invention discloses the preparation of novel aromatic hydroxyl containing compounds with an aliphatic or cycloaliphatic organosiloxane moiety in the backbone (skeleton) by the hydrosilylation method, their derivatives and the cured resins which are useful for electronic, coatings and composite applications.